How did your stock portfolio perform in year 2009?

[Dennis Ng]

As you might know, in year 2007, I sold off most of my stocks and as a result, managed to avoid the carnage from the stock market Crash in year 2008. I only started buying back stocks from Oct 2008 onwards after the collapse of Lehman Brothers and after Warren Buffett came out to say it is Time to be greedy when others are fearful.

However, it was a little too soon, the markets fell lower. In fact, by Jan 2009, those stocks I bought from Oct to Dec 2008 were "underwater" by about 30%.

The stock market went lower thereafter and only bottomed in March 2009. Of course, thereafter the stock market just went up and up and STI is now about 100% above the low of 1,456 reached on 9 March 2009.

However, despite missing the bottom, as at 31 Dec 2009, I still managed to achieve about 35% returns overall for my stock portfolio (excluding dividends) in year 2009.

Along the way I picked up stocks with high dividends, mainly REITs, which on average give me about 10% dividends...I've about S$250,000 invested into REITs which give me another estimated S$25,000 in dividends in year 2009 alone (on top of the portfolio market value) I mentioned.

This past year of Financial Crisis showed that "Be Greedy when Others are Fearful" is truly one simple way to "Buy Low". It is easy to say Be Greedy when Others are Fearful, and not so easy to do, I know it, becos I myself felt the fear when I bought stocks then.

How did you stock portfolio perform in year 2009, any lessons you like to share you learned?

As we start the year 2010, I still have about 35% held in Opportunity Fund, which I might deploy into commercial properties....I'm still adopting a wait and see approach.

My current portfolio is about 35% in Cash, 35% in Stocks, 30% in other investments (such as 10% in Land, 10% in UK Traded Endowment, 4% in French Wine and 6% in Gold/Silver).....the percentage varied not becos I sold off my other investments but becos my total investment assets, (including Investible Funds) grew by about 35% in year 2009 to about S$1.4 million now. Hopefully, by end of year 2010, I would grow it to over S$2 million. (I reached my first million in year 2008).

Some people prefer to trade stocks.....alot of work (trading in and out of stocks) for 1 whole year but little profits to show. Whereas I personally prefer to invest, buy low and do nothing much and 1 year later increased my wealth by over hundred thousand dollars........when I invest, it is possible and I dare to invest 100% of my money (over S$1 million dollars).

I mitigate my risks through diversification (Asset Allocation or putting my eggs into different baskets) and doing homework (including having margin of safety for my investments)

Most of us are busy full-time with our business or job.

I think for the average person, what is Workable is to earn money (cashflows) through a full-time business/job and use the savings to invest. I've friends who trade full-time and it is not easy to earn over S$10,000 a month.

On the other hand, now I earn over S$30,000 a month from my businesses and still have time to Grow my money by investing after work and reading/doing "homework" on weekends.

[alvin]

Thanks Dennis for your frank sharing of your personal wealth and finances. It is inspiring nontheless!

To do well in investing, I do feel there must be some interest in it - so that one will spend time and effort to learn and analyse. People that lack the passion in this area tend to have problems growing their money.

I believe you are doing a good job in imparting your knowledge, especially to this group of people, to give them hope that it is achievable. So that they can take the first step to put their dollars to work!

[Dennis Ng]

Thanks Dennis for your frank sharing of your personal wealth and finances. It is inspiring nontheless!

To do well in investing, I do feel there must be some interest in it - so that one will spend time and effort to learn and analyse. People that lack the passion in this area tend to have problems growing their money.

I believe you are doing a good job in imparting your knowledge, especially to this group of people, to give them hope that it is achievable. So that they can take the first step to put their dollars to work!

thanks.

yes, it is achieveable. The fact that I accumulated my first million dollars over 15 years with an average income of S$6,000 or earning S$1.08 million in total proves that this can be achieved by the average Singaporean.

Year 2009 marks the beginning of the next phase of my life, whereby I will start to teach others how to save and accumulate their wealth to reach Financial Freedom.

[ederxu]

Thanks Dennis for sharing your knowledge with us.

This forum indeed has alot of info and insight. Thanks for all whom have shared.

Happy New Year!

[alvin]

Soon, a millionaire would mean lesser. Over time, we would need more than a million to survive.

The only way to keep up is to really learn how to grow one's money, before it is too late!

[Dennis Ng]

Soon, a millionaire would mean lesser. Over time, we would need more than a million to survive.

The only way to keep up is to really learn how to grow one's money, before it is too late!

yes, we need to hurry. Why? Becos I personally think that Singapore will become a heaven for the Rich and a hell for the Poor in less than 10 years' time. It is clear that Singapore wants to be a magnet to attract the Rich here...cost of living will inevitably rise and rise.

Which is why I want to conduct seminars, so that I can help more people become financially free before that happens.

[wemakebread]

I agree that Singapore is becoming an expensive place to live in.
One significant indicator is the rising cost of housing.

Being a small city state, there is limited space that can remain as suburbs that provide low cost housing & shelter from the heat of property boom.

Among my peers, some bought HDB units for $400-600k.
30 year loan, max out CPF.
I really can't see how wage increase can ever catch up with rise in housing price.

The rich can get richer by investing in properties, whether by renting, flipping or buy & hold. But middle class may feel that the price of some HDB flats are slipping beyond your reach. In the end, they become asset rich (property & CPF) but cash strapped, with very little to invest for their future.

[Dennis Ng]

anyone else like to share how your investment portfolio did in year 2009 and what lessons you have learned?

Sharing is the best way to learn, this is why I share so much.

Every master was once a disaster. In 1997-98 Asian Crisis, I lost almost half of my money in stocks....thereafter I started to seriously learn about how to invest, so there is NOTHING to be ashamed of, it is all part of our "journey".

[alvin]

I shared my investment report for 2009 on my blog:

In terms of investing STI ETF:

As of Dec 09 holdings, I have 3077 shares of STI ETF and a Dollar Cost Average price of $2.5448 for each share. STI ETF closed at $2.99 today. This would translate to a positive gain of $1369.63.
You can read more here:http://www.bigfatpurse.com/2010/01/my-s ... me-crisis/

In terms of my trading:

After doing some math by taking the percentage change in capital between Dec 09 and Apr 09, my return is 54.4%.
You can read more here: http://www.bigfatpurse.com/2009/12/trad ... year-2009/

[kelly wee]

Hi Dennis and All Mentors,

Last year the market started to took off in Mar but I didnt get in at that time. I started after attended Dennis 3 days lesson. Frankly speaking, I dont have much capital to invest and started with as low as 5K for my initial investment. Now there is sign of growing a few nest eggs and looking forward to grow more dozens of it in the coming years. Since started of the forum I find that Dennis and all the mentors when they ask questions to each other or to the rest of learners are very interesting and that is the time to learn more on top of the Fundamental Analysis itself.

Wishing all of you a very good year ahead.
KW

[Dennis Ng]

Hi Dennis and All Mentors,

Last year the market started to took off in Mar but I didnt get in at that time. I started after attended Dennis 3 days lesson. Frankly speaking, I dont have much capital to invest and started with as low as 5K for my initial investment. Now there is sign of growing a few nest eggs and looking forward to grow more dozens of it in the coming years. Since started of the forum I find that Dennis and all the mentors when they ask questions to each other or to the rest of learners are very interesting and that is the time to learn more on top of the Fundamental Analysis itself.

Wishing all of you a very good year ahead.
KW

Hi Kelly,

feel free to ask questions, that is how we can learn more.

many drops of water make an ocean.

In 1996, I had S$5,000 in my bank account and owe S$40,000 Renovation loan, I was "negative Cash". In 2008, I accumulated one million dollars...so it can be done, many drops of water indeed make an ocean.